Foreclosure offense is often characterized as a set of techniques used to take legal action against lenders in order to avoid foreclosure. It can also be used as a response to foreclosure after mortgage lenders have initiated the foreclosure process. Common terms associated with foreclosure offense include counterclaims or loss mitigation.
With foreclosure offense homeowners may try to take the legal offensive by pursuing proactive legal action to slow or stop the foreclosure process. In addition, in the case that homeowners were wrongly foreclosed upon, they may pursue a case against their mortgage lenders.
Foreclosure Offense Advantages
Foreclosure offense may provide homeowners with the opportunity to effectively fight foreclosure if the mortgage lender’s foreclosure case can be proven as unjustified. In light of numerous foreclosure scandals, a number of homeowners are beginning to pursue foreclosure offense since not every case of foreclosure initiated by the mortgage lenders are justifiable.
Homeowners may be motivated to pursue foreclosure offense after discovering instances of:
– Illegal transfer of deeds
If an illegal transfer of deeds occurs, homeowners may choose to pursue a quiet title lawsuit against their mortgage lenders. This type of lawsuit focuses on uncovering the true owner of a property in order to clear or “quiet” all other claims from any other person or entity. If it is discovered the mortgage lender who initiated the foreclosure process does not have an adequate claim on the property in question, the mortgage lender’s foreclosure case may be thrown out in court.
– Violations of the Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) defines acceptable procedures for debt collectors to follow when pursuing the collection of a debt. The acceptable procedures outlined by the FDCPA include clauses on times during the day when debt collectors can call, how and where the debt collector can contact a debtor, ethical behaviors when collecting a debt and more. In the case that a mortgage lender has violated some or all of these provisions, homeowners may be able to pursue a case against their mortgage lenders.
– Violations of the Truth in Lending Act (TILA)
The Truth in Lending Act (TILA) defines the required disclosures of specific information that must be provided to a borrower prior to offering a mortgage loan or other type of loan. TILA was setup to help borrowers make well-informed decisions prior to entering a contractual debt obligation. In the case that mortgage lenders did not disclose certain required information, homeowners may be able to pursue a case against them.
Robosigning became a rampant problem in the foreclosure industry after a large number documents were discovered to have fraudulent signatures. Robosigning can occur when an employee of a mortgage lending company or bank signs off on documents without verifying its contents. This can help mortgage lenders initiate the foreclosure process on false grounds. In the case that robosigning is discovered, it may be possible to pursue a foreclosure offense case based upon wrongful foreclosure.